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SiriusXM added 131,000 self-pay subscribers in the fourth quarter and beat its full-year guidance for earnings and free cash flow while only slightly missing its revenue goal, the company announced Thursday (Feb. 1). The satellite radio giant lost 445,000 self-pay subscribers for the full year, however.
Full-year revenue declined 0.6% to $8.95 billion, slightly below last quarter’s guidance of $9 billion. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined 2% to $2.8 billion, coming in a little above guidance of $2.75 billion. Free cash flow of $1.2 billion was down about 23% but beat guidance by $50 million.
SiriusXM, built on a satellite radio service favored by older consumers, is in re-building mode. The company launched a new app in November and a $9.99-per-month streaming-only subscription service aimed at younger audiences who don’t listen primarily in their cars. The app houses Sirius’ 400-plus channels in addition to an audio library and a growing stable of podcast content that includes such brands as Smartless, which earlier this week left Amazon’s Wondery after striking a $100 million deal with SiriusXM, and Conan O’Brien’s Team Coco, which SiriusXM acquired in 2022.
The strategy isn’t likely to produce results this year, though. “While early indications are showing signs of positive impacts of our business investments, it will take time for these to fully reflect in our subscriber and financial metrics,” said CEO Jennifer Witz during Thursday’s earnings call.
While SiriusXM expects “roughly level” subscriber numbers in 2024, new streaming-only subscribers pay less than satellite radio subscribers and will result in a lower average revenue per user. Those factors, along with an advertising market Witz called “uncertain,” leads the company to expect two of its key financial metrics to fall in 2024. Full-year revenue guidance of $8.75 billion would be a 2.2% decline from $8.95 billion in 2023, while adjusted EBITDA guidance of $2.7 billion would mark a 3.3% year-over-year decline. Free cash flow is expected to remain at $1.2 billion.
Investors appeared to have baked the rebuild process into their forecasts and did not react negatively to Thursday’s earnings results. Shares of SiriusXM rose as much as 5.1% on Thursday morning and closed at $5.23, up 2.8%.
SiriusXM’s satellite radio service generated full-year revenue of $6.8 billion, down 1% year over year. Self-pay subscribers grew 131,000 in the fourth quarter after falling 96,000 in the third quarter. For the full year, self-pay subscribers fell by 445,000 to approximately 34 million. Paid promotional subscribers dropped by 225,000 in the fourth quarter but increased by 15,000 for the full year.
Pandora revenue increased 1% to $1.6 billion, while its subscribers fell 3% to 6.0 million, down from 6.2 million at the end of 2022. The music streaming service finished the year with 46.0 million monthly active users, down 3.4% from 47.6 million in the prior-year period. Total ad-supported listener hours of 10.48 billion in 2023 was down 4% from 10.88 billion in 2022. Pandora’s gross profit dipped 3% to $638 million.
SiriusXM laid off 8% of its staff in March 2023, which resulted in approximately $140 million in cost savings, CFO Tom Barry said on Thursday. This year, the company is targeting nearly $200 million in additional savings, he added, that will be “reinvested” in “more targeted and more performance-oriented marketing on the streaming side.”
SiriusXM’s full-year 2023 financial metrics
Total revenue of $8.95 billion, down 0.6%.
Adjusted EBITDA of $2.8 billion, down 2%.
Free cash flow of $1.2 billion, down 23%.
SiriusXM revenue of $6.8 billion, down 1%.
Pandora revenue of $1.6 billion, up 1%.
SiriusXM satellite radio self-pay subscribers of 34 million.
Pandora subscribers of 6 million.
The rock band Sublime has filed a legal malpractice lawsuit against the prominent music law firm King Holmes Paterno & Soriano LLP, accusing its former attorneys of a “pattern of self-dealing” that was rife with conflicts of interest.
In a complaint filed last week in Los Angeles court, Sublime claims that Howard King, Peter Paterno and Joseph M. Carlone committed a wide range of malpractice while representing the band, including brokering a merchandise deal with one of the firm’s other clients that the band alleges cost it millions of dollars.
The lawsuit claims that King Holmes — a storied music industry law firm with a star-studded list of clients — “failed in their ethical, fiduciary, and lawyerly obligations to protect the interests of their clients.”
“Behind their façade as music industry power brokers, KHPS’ number one priority was not their client Sublime’s legal and business goals, but rather KHPS’ own financial and business interests,” the band’s new attorneys write. “Despite holding themselves out to the public as highly experienced in the business side of music, … defendants engaged in a pattern of self-dealing that was rife with potential and actual, conflicts of interest.”
When reached for comment on the allegations Thursday, Howard King told Billboard simply: “Welcome to Fantasyland. Please enjoy the ride.”
The case was filed by Sublime’s surviving members, Eric Wilson and Bud Gaugh, as well as by the widow and son of Bradley Nowell, Sublime’s original lead singer who died of a drug overdose in 1996. The band’s corporate entities — Sublime Merchandising LLC and Jake And Troy Brand LLC — were also named as plaintiffs.
King Holmes Paterno & Soriano touts an eye-popping list of music industry clients, from Dr. Dre to Pharrell Williams to Blink-182 to the Tupac Shakur estate. King famously represented Williams and Robin Thicke in the “Blurred Lines” copyright case; Paterno represented Metallica in its legal battles against Napster over internet piracy.
But in its complaint, Sublime accuses King Holmes of “playing both sides” on multiple occasions. In one instance, the firm allegedly failed to disclose that it was representing both the band and former manager Dave Kaplan on the same transaction, even though the two sides had “adverse interests” in the deal. In another, the band claims that King Holmes steered the band into a merchandise deal without disclosing that the company was another one of the firm’s clients.
“Instead of negotiating the most lucrative terms for Sublime on the open market among multiple potential merchandising vendors, KHPS participated in self-dealing,” the band wrote. “KHPS misadvised SUBLIME which resulted in SUBLIME entering into an agreement with FEA, which triggered far less lucrative terms and merchandising royalties than Sublime would have otherwise gotten if they had been taken to the open market at that time.”
In another incident, Sublime claims that Paterno and Carlone failed to disclose that they had negotiated producer credits and fees for themselves on a documentary about the band, allegedly creating another undisclosed conflict of interest.
“Sublime never requested that Paterno make himself a producer, nor Carlone make himself a co producer on the documentary,” the lawsuit reads. “Paterno not only covertly insisted on and obtained this producer title and hefty sum of money, but he then shockingly billed SUBLIME thousands upon thousands of dollars in legal bills for time spent negotiating and obtaining the terms of his producer credit and fee.”
Republic Records‘ CEO and COO Monte and Avery Lipman accepted the award for the label of the year at Billboard‘s Power 100 event last night (Jan. 31) in Los Angeles. The award was presented by Noah Kahan, who recalled being signed to the label nine years ago when he was, he recalled, “a kid with […]
The Universal Music Group announced a massive restructuring of its record label operations Thursday (Feb. 1), reorganizing its web of frontline labels to align them under two main companies, in Republic Records and Interscope Records. The move, which can loosely be termed an East Coast (Republic) and West Coast (Interscope) realignment, means that Interscope’s John Janick and Republic’s Monte Lipman will be leading U.S. label operations for UMG.
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As part of the move, the other U.S. label heads will now report through to Janick and Lipman, a source confirms. In the new alignment, Janick will now oversee Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Lipman will oversee Republic, Def Jam, Island and Mercury.
UMG chairman/CEO Lucian Grainge announced the move today in a memo to staff, in which he acknowledged that Republic and Interscope have been the two market leaders in current market share in recent years; in 2023, Republic claimed 13.47% of the U.S. market, while Interscope was second, at 8.80%.
“As our labels continue to maintain their creative A&R and marketing independence, unique identities, and entrepreneurial spirit, they’ll also be provided with access to the talent and resources best able to support their rosters and bring them to new levels of success,” Grainge wrote in the memo, obtained by Billboard. “It’s a proven model we pioneered on the East Coast several years ago — one that we will accelerate and expand.
“As this model takes shape and spurs new creativity, our U.S. recorded music business will continue to outperform and outgrow our competition,” Grainge continued. “Led by the industry’s best creative visionaries — we will cultivate more repertoire sources, we will invest more in new artists and emerging genres, and UMG will become an even more attractive destination for the world’s most gifted artists.”
The move comes after weeks of speculation about layoffs and restructuring at the company, and while no other moves were announced Thursday, layoffs are still expected, according to many sources. In his memo, Grainge said that “In the coming weeks, John and Monte will be making further announcements about structure, resources and next-generation partnerships. These and other developments will also power some of the other initiatives I outlined in my New Year’s note, including super-fan and audience monetization, state-of-the-art D2C, e-commerce, branding and more.”
Universal has restructured its label network in the past, generally during times of big change in the music business. In 1999, at the formation of what is now the Universal Music Group, the company structured its label operations into Island Def Jam, Universal Motown Republic, Verve Label Group and Interscope Geffen A&M. In 2012, UMG purchased EMI Music’s recorded music operations, bringing Capitol Records, Blue Note and others under its purview, forming the Capitol Music Group. Then in 2014, UMG unwound its East Coast operations to make Def Jam, Island and Motown all standalone labels; in subsequent years, Motown would be moved under the Capitol Music Group umbrella, while Island would begin sharing services with Republic. This new reorganization combines several of those labels under a streamlined structure once again.
“The competition within our own company in signing and developing artists is no accident. It’s by design,” Grainge wrote in his memo. “By creating a home for a variety of independent and competitive creative centers and the leaders that run them, we increase opportunities for growth and success.
“At the same time, our culture never lets our ‘in-house’ competition become destructive; our executives never forget that we are all part of the same UMG team. John and Monte consistently share strategies for success with our labels in the U.S. and around the world, strategies that benefit artists signed to all our labels, not just those on Republic and IGA.”
With Universal Music Group‘s catalog now being slowly removed from TikTok, the music company issued a new statement Thursday (Feb. 1) commenting on what it says are TikTok’s “woefully outdated” views on music licensing and compensation. Explore Explore See latest videos, charts and news See latest videos, charts and news The stalemate between the world’s […]
With 110 million buyers, sellers, collectors and lurkers roaming through Discogs every year, the 23-year-old online music marketplace’s forum threads are not exactly full of emotional support. In one of the notoriously messy threads, users complain about the May 2023 increase in selling fees from 8–9%. “What a rip off,” goes one post.
In another forum, someone advises a seller contending with a buyer demanding a full refund: “People here need to have more balls when dealing with dopes. Grow a pair.” And another user simply writes: “Discogs has gone downhill. It’s really sad. I have loved this site for so long. It feels like bots are running it. AI is just going to make it worse.”
How does Discogs turn these passionate, semi-anonymous user criticisms into upgrades? Very carefully, according to Lloyd Starr, chief operating officer since May 1: “We’ve got millions of people on the platform every month now. It’s a lot harder to find the signal in that noise.”
To improve communication between Discogs and its users, the company’s executive leadership plans to spend 2024 rolling out initiatives to solicit user suggestions and make broad changes. The Discogs community remains angry about the fee increase — which applies to shipping costs, too — and the way the company suggested the “easiest thing” for sellers to do would be to increase their prices. In a “we can do better” post last month, founder and CEO Kevin Lewandowski announced a soon-to-be-created Community Advisory Board, for users to “bring feedback and ideas to Discogs and influence how the platform evolves.”
The advisory board, Starr suggests, will be the centerpiece of Discogs’ changes. In roughly late March, Discogs will solicit applications from users and appoint representatives from the “selling, contributing and collecting” communities, as Starr calls them, by early summer. “It’s more of a dynamic conversation than a one-way post on a forum,” he says.
Lewandowski and Starr have already begun their Discogs feedback-solicitation tour. The pair traveled to New York City together in mid-January to meet with power users, including Craig Kallman, chairman and CEO of Atlantic Records, who gave them a tour of his two million LPs. Starr won’t reveal exactly what these users suggested, but he outlines a broad plan for Discogs to use surveys, polls and live contests at record-selling events. “We really want the community to feel listened to and give them advice,” he says.
In addition, Discogs will roll out “25 in ’25,” an attempt to boost the company’s online database from 17 million listed items to 25 million by its 25th anniversary in November 2025. (As of 2019, the latest year in which Discogs released sales numbers, users sold 14.6 million items on the platform, including 11.6 million vinyl LPs.)
To help achieve 25 million, the company recently hired Brent Greissle, a longtime user who has personally added 50,000 entries to Discogs’ database, as principal of discography affairs, to oversee the project. Starr also hopes to expand the database’s “richness and diversity in culture,” tapping into Brazil’s record-store community, for example, through trips to Sao Paulo, like one Lewandowski recently took to visit the world’s biggest LP collector, Zero Freitas, who by some accounts owns over six million records.
As for technological changes, Lewandowski spells out plans to improve the log-in and checkout systems and want lists. “I wrote most of the code originally back in 2000. It had a major rewrite in 2004. Some of our current software goes back that far,” he says. “This enables us to do things faster and give the community things they’ve been asking us for.” Starr elaborates that Discogs has been working for years to upgrade order management, user authentication and fraud mitigation to bring the site up to Amazon-style e-commerce standards — but it’ll take more time. “We’ve got a little technical debt to resolve here,” he says.
Several Discogs users say they’re skeptical of broad changes coming from executive leadership, which they say hasn’t listened to their concerns. Jonathan Highfield, a longtime seller near Liverpool, England, complains that Greissle, a liaison between Discogs management and user forums, is too overloaded to respond effectively about slow-loading pages or difficulty searching for releases by genre, style or label. “If they’re listening, great, but the channel is too narrow for enough information to pass through,” Highfield says. “It makes people not want to use the site.”
And like many sellers, Kurt Walling, a semi-retired optician in Streetsboro, Ohio, who has been offloading portions of his personal collection via Discogs for years, remains upset about last year’s increase in selling fees. Of the imminent changes Starr is describing, Walling says: “My inclination is to think it’s corporate stuff. I don’t think it’s sincere.”
By way of response, Starr says, the last time Discogs changed its fees was 10 years ago, and since then, the company has been “absorbing the rising cost of salaries, the rising cost of enterprise software.” Plus, competitors like Amazon and eBay take a sales percentage out of every order, and Discogs is “doing the same thing.” While Discogs could have communicated the new fees more effectively to users, according to Starr, “I don’t think removing fees makes sense.”
And for all the discontent found on the Discogs forums, one user is satisfied with his experience: Kallman, who continues to use its database to help track Atlantic’s vast catalog of releases. “Crucial, rare, out-of-print recordings that might otherwise be at risk of being forgotten in the digital era are all preserved,” he says. “The database is the most valuable asset of Discogs, and they give it away for free. It’s a constant, evolving, living, breathing organism that continues to fine-tune to maintain the completeness of the platform.”
After a string of pivots, rebrands, upgraded offerings and expanded plans, YouTube Premium and Music has passed the magical 100 million subscribers mark, counting users in trials, the company announced Thursday (Feb. 1).
That’s up from the 80 million Premium and Music subscribers around the world (including trials), reported in November 2022, and a jump from 50 million users at the end of 2021.
The milestone is cause for great celebration at the company, notes Lyor Cohen, global head of music at YouTube, in an open letter to the industry issued today (Feb. 1). “This 20-million-member growth in just over a year underscores the strength of our twin engine of advertising and subscriptions revenue,” writes Cohen.
The Alphabet-owned business unveiled its subscription offering, YouTube Music, back in October 2015, and launched its dedicated app the following month.
The streaming landscape then was littered with naysayers. “Many doubted a subscription model could thrive on YouTube,” Cohen notes. “They said the market was crowded and our platform was too different. Today – 100 million subscribers later – our distinctiveness is precisely what drives our success and why I still see so much room for growth.”
Later, in June 2018, YouTube announced the launch of YouTube Premium, formerly known as YouTube Red. Since then, notes Cohen, the Premium service’s global expansion has ramped up and is “now thriving in over 100 countries and regions” with “more on the horizon in 2024.”
By crossing the 100 million mark, “we’re delighted and humbled,” comments Adam Smith, vice president of product management at YouTube, in a separate statement.
Along the way, “we learned a lot, made a few pivots (and even rebranded), expanded our offerings and plans, and made YouTube Music and Premium available in over 100 countries and regions,” adds Smith.
In a matchup of streaming heavyweights, Spotify, the market-leading music platform, holds the advantage. The Sweden-based business came to market early, in 2008, and boasted 226 million premium subscribers worldwide in Q3 2023.
Though Apple rarely shares updates on subscriber numbers, in June 2022, J.P. Morgan estimated Apple Music could hit 110 million subscribers by 2025. The last time the company reported subscriber numbers for Apple Music was in 2019, when it reported 60 million paid users.
As YouTube hangs the decorations, captains of the industry are lining up to thank their tech partner — including a former YouTuber now leading a major label.
“Having been at YouTube when we conceived of the subscription service, 100 million customers felt like a distant possibility,” says Robert Kyncl, who was chief business officer at YT before joining Warner Music Group as CEO. “Today, it’s yet another signpost on a journey of extraordinary growth. The fact that YouTube continues to go from strength to strength isn’t just good for them, it’s healthy for the entire music ecosystem.”
Lucian Grainge, chairman and CEO of Universal Music Group, says the team led by Cohen and YouTube CEO Neal Mohan deserves credit for “continuing to grow and drive innovation while making significant contributions to the global music ecosystem. Our partnership demonstrates that if you start from a foundation of respect for artists and songwriters, there are limitless opportunities to create thriving businesses that benefit artists and fans alike.”
Adds Helen Smith, executive chair of pan-European independent music companies’ trade body IMPALA: “YouTube has a unique place in the music ecosystem, is a valued member of IMPALA’s Friends scheme and a great partner of our 100 Artists to Watch program.” She continues, “We look forward to continuing to work together across the whole European market where there is so much potential for digital services who see diversity as an asset.”
According to Cohen, YT’s businesses have contributed $6 billion in the past year.
“The music industry is at a critical juncture,” he writes. “Together, we can harness technological innovation to drive unprecedented value for artists and fans, building on our momentum that contributed $6 billion to the music industry in 12 months.”
That future, one where the music industry “thrives,” he insists, would see both sides leveraging AI to enhance creative imagination, seamlessly bridging short-form and long-form content for maximum artist exposure, and more.
Read Cohen’s thank you letter here.
A years-long legal fight over Nirvana‘s iconic smiley face logo could be headed for a major showdown, sparked by a former record label art designer who says he, not Kurt Cobain, created the famed drawing.
Lawyers for the 1990s legends are locked in a sprawling, three-way dispute over the image, which has appeared on countless t-shirts and other merch in the years since Cobain’s death. Nirvana is suing fashion designer Marc Jacobs for using it without permission on grunge-themed apparel, while Robert Fisher — a former designer at Geffen Records — is fighting the band over who created it in the first place.
In a filing last month in Los Angeles federal court, Fisher asked for the right to take the case to a federal appeals court. He wants to challenge a decision in favor of the band, issued in December by the judge overseeing the case, that he claims would “unfairly tip the balance of equities in favor of Nirvana” in an upcoming trial.
“For justice to occur, the jury should be presented with all disputed issues of fact, not only those convenient to Nirvana,” Fisher’s lawyers wrote.
Nirvana has been in court for years over the famous drawing – a yellow smiley face with X’d-out eyes that first appeared during promotion for 1991’s Nevermind. The design eventually became something of an unofficial logo for the band, and has become particularly prominent again in recent years amid a wave of 90s nostalgia among younger music fans.
Lawyers for Nirvana’s corporate entity first sued Marc Jacobs in 2018, accusing the design house of using a look-alike image on a line of its own t-shirts and other apparel called “Bootleg Redux Grunge.” They said Jacobs had just replaced “Nirvana” with the word “Heaven” and replaced the two eyes with an “M” and a “J,” but had changed little else.
“Defendants’ use of Nirvana’s copyrighted image on and to promote its products is intentional, and is part and parcel of a wider campaign to associate the entire ‘Bootleg Redux Grunge’ collection with Nirvana, one of the founders of the ‘grunge’ musical genre,” the band’s lawyers wrote at the time.
In their initial complaint, Nirvana’s lawyers said the smiley face had been created by Cobain – the conventional wisdom for decades about the logo’s origins. But after reading media coverage of the lawsuit, Fisher jumped into the case in 2020, claiming the band’s allegations against Jacobs suffered from just one teeny-tiny flaw: “It is, in fact, Mr. Fisher, who authored the Happy Face, not Mr. Kurt Cobain.”
In legal filings, Fisher told a detailed story of how he allegedly created the design. While working as an art director at Geffen, he said he had quickly become “Nirvana’s go-to person for most of its graphic design needs.” In the summer of 1991, he says he was asked to design something more “consumer-friendly” than an existing t-shirt logo, which featured a circular illustration depicting one of the circles of hell from Dantes Inferno.
“Wanting to stick with a circular design, he started playing around with variations of the smiley faces that he used to draw in his final year at [college], when acid culture was at its peak,” Fisher’s lawyers wrote. “Ultimately, Mr. Fisher settled on an x-eyed design and added a tongue pointing sideways.”
After the lawsuit against Marc Jacobs was filed, Fisher says he originally took his story to the band, assuming it would “help” their lawyers to understand his involvement in the creation of the smiley logo. But he says he was quickly rebuffed because the “the facts” were “a serious inconvenience” to the band.
“For 30 years now, Nirvana has reaped enormous profits from Mr. Fisher’s works through the sale of a wide range of products,” his lawyers wrote in their legal filings. “Assisted by a team of lawyers and managers, Nirvana was able to do so without any compensation to Mr. Fisher by falsely claiming authorship and ownership.”
Unsurprisingly, Nirvana see things differently. The band’s lawyers have staunchly maintained that it was Cobain who had designed the image. But as an alternative, they’ve also argued something else: That even if it was Fisher who created the logo, he did done so as a “work-for-hire” for Geffen. Under the rules of copyright law, would mean that the company — and not Fisher — was the legal “author” of the work.
In December, Judge John A. Kronstadt largely agreed with Nirvana’s assessment. Fisher had argued that he’d done the logo on his own, as a side project separate from his job at Geffen. But the judge ruled that Fisher had clearly been an employee of Geffen at the time, and the task in question – designing a graphic for a Geffen-signed band – was clearly done as part of that job. “Assuming Fisher drew the Smiley,” the judge wrote, “it was a work for hire for Geffen.”
It’s that ruling that Fisher now wants to appeal. In last month’s filing, he asked Judge Kronstadt to hit pause on the case, and instead allow him to immediately challenge the decision at the U.S. Court of Appeals for the Ninth Circuit. In doing so, he warned the judge that his decision on the work-for-hire issue was not only “highly erroneous” – he says he created the design “as a fan of the band, outside of any of his tasks for Geffen” — but also procedurally unfair.
“It will likely be years until this lawsuit is finally resolved and Fisher is able to appeal,” his lawyers wrote. “This case would proceed to a trial where the jury would be extremely limited in the findings it could make and where it would be required to completely ignore Fisher’s position in this matter.”
Attorneys for Nirvana did not return a request for comment, but they believe no such delay is necessary. In legal filings, they’ve asked the judge to move toward settling a trial date; in private correspondence that Fisher disclosed in his filings, they were more blunt: “We are opposed. The Court’s ruling is clear, carefully considered and correct. No more delay. Let’s get the case to trial ASAP.”
Lawyers for Marc Jacobs – which obviously stands to benefit if Fisher is the true owner of the smiley face logo – declined to comment for this story. But they’ve also weighed in and, unsurprisingly, they want any talk of a trial postponed until Judge Kronstadt decides on whether Fisher can get his chance to make his case before an appeals court: “The case will only be ready for trial after Mr. Fisher’s role in that trial is determined.”
In recent weeks, The Nitty Gritty Dirt Band, Doug Stone, John Michael Montgomery, Ray Stevens and Lee Greenwood have all publicly announced plans to wrap the road portion of their careers. They’re hardly alone.
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The Oak Ridge Boys started their farewell tour this past fall, though tenor Joe Bonsall, suffering from a neuromuscular disorder, was forced to hang it up at the end of December. Dolly Parton recently revealed that she had decided not to return to the road since she wrapped her last tour in 2016. Additionally, country/rock band The Ozark Mountain Daredevils and the Eagles, whose current lineup includes country artist Vince Gill, are also concluding their regular concert routines. (Gill will continue to work as a solo act.)
Retirement is a well-earned rite of passage for most people in later life, though there are plenty of musicians — Willie Nelson and the late Tony Bennett and B.B. King are good examples — who maintain a road life until their bodies give out. They find it difficult to stop, spurred by fan adoration, good paychecks and/or the simple joy of performing.
But this new wave of retirees is generally finding it easier to hang it up after experiencing an extended home life during the pandemic. Once their tours were canceled in 2020, most country artists found themselves anchored for 12 to 24 months. Artists in their prime couldn’t wait to get back out, but those on the back end of their careers began to recognize that if they ended their road-warrior phase, it wasn’t necessarily the end of the road.
“We got a dose of our real life,” Nitty Gritty Dirt Band co-founder Jeff Hanna says.
The benefits include the kinds of everyday events that can’t be experienced from 1,000 miles away: dinner with a spouse, attending a daughter’s graduation or playing with the grandkids in the backyard. Making music for a living is attractive — none of the retirees wish they’d dug ditches or balanced books instead — but it involves sacrifices, and they discovered the opportunity exists to stop and smell the roses at home.
“We’ve got enough to retire on, so why not enjoy the rest of my life with my family?” asks Stone, whose 13-year marriage has produced a 7-year-old daughter. “We love going to Disney. I want to go see the redwoods and stuff like that.”
That yearning to explore the world is part of the attraction for young musicians, and in the early years, America’s topographic diversity can help keep a touring job interesting. But heavy concert schedules don’t usually allow much time to play tourist. Stone remembers one trip in upstate New York when the bus came within a 10-minute drive of scenic Niagara Falls. They had to bypass it stay on time, and he has never been back.
“I didn’t get to see America,” he says. “I got to see the back seat of a bus.”
The current wave of road retirements is actually a sign that some of Nashville’s structural changes have worked. Many of country’s previous legends — Hank Williams, Jimmie Rodgers or 1960s/1970s-era George Jones — faced financial problems after spending lavishly during their peak commercial years. Since then, business management companies have sprouted, helping modern acts plan their financial futures. Where many of their predecessors were required to tour until they couldn’t stop, modern acts have options.
“Most of them over the decades have gotten smarter in terms of managing their finances,” says Action Entertain Collective booking agent Travis James, who represents Montgomery and several other ’90s-associated acts. “Are there exceptions to that? Sure. There’s always going to be people that piss their money away with divorce or drugs or whatever the case may be. That’s in accounting and that’s in the NFL — it’s in everything. But by and large, the artists that were viable enough to have long careers and a show full of hits, even if they didn’t do it right the first half of their career, they figured out how to do it right the second half.”
Not that everyone is thrilled about hanging it up. During the COVID-19 break in the concert schedule, The Oaks missed the stage, missed seeing their fans and longed to make music again.
“That’s all we do in our lives,” bass singer Richard Sterban says. “We go out and entertain people and help people with our music. And we were not able to do that, so we didn’t necessarily like that feeling.”
Still, long rides on a sedentary tour bus and the repetitive motion involved in making music take a toll. Greenwood has titanium knees after several surgeries and had back surgery in 2020. Hanna blew an Achilles tendon in 2019 and now walks for exercise instead of running. And he has experienced some issues with his left hand — “which is kind of the money hand on the guitar,” Hanna says. “I have to play a little differently now.”
The body sort of makes retirement inevitable for most — “Like [Jimmie] Fadden says, ‘Do the math,’ ” Hanna quips — but modern artists’ money management makes it easier to take that step.
Greenwood, Stevens and Stone all plan to conclude their regular concert schedules in 2024, while Montgomery expects to wrap in 2025. The Oaks and Nitty Gritty Dirt Band could go on for years, in some cases picking the venues based on sentiment rather than income.
“We would prefer to go back to familiar places, to go back to people that we know,” Sterban says. “Basically, we want to perform in front of people that have helped make us who we are today.”
But the demand goes up once promoters and fans realize the artist’s shows are coming to an end, which also increases the price for many bookings. That’s the good news for the agents, though farewell tours are bittersweet for them, as they lose valuable clients.
“When they tell me they can cut back, that doesn’t help my financial bottom line,” James says. “I can’t sit here and tell you that I’m necessarily happy about it, but I sure am proud that I was part of the solution in helping them fulfill their goals professionally.”
If they retire early enough, the artists may be preserving themselves, too. Extended travel is physically challenging at any age. They’ll very likely miss the stage, but maybe not the wear and tear required to get there.
“I want to be on the planet,” Stone says, “not in it.”
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Drag-focused management firm Producer Entertainment Group (PEG) is officially expanding their stiletto-shaped footprint in the entertainment industry. On Thursday (Feb. 1), PEG announced their acquisition of Five Senses Reeling (FSR), a touring and events agency catering to LGBTQ audiences, Billboard can reveal. FSR joins PEG’s growing suite of businesses, including music label PEG Records, SERV […]